Survey: Michigan local leaders sour on data centers; want more regulations
A recent survey reveals that less than 1 in 5 Michigan local government officials believe large-scale data centers are worth their costs, with a majority advocating for stricter statewide regulations. This reflects growing public and local official backlash, leading to proposed state-level moratoriums and a reevaluation of tax incentives originally designed to attract the industry.
A survey conducted by the University of Michigan’s Center for Local, State, and Urban Policy indicates that fewer than 20% of Michigan's local government officials view large-scale data centers as beneficial enough to justify their costs. The sentiment is particularly negative among rural leaders, where data centers are commonly developed due to inexpensive land, with only 12% supporting them compared to 40% in urban areas. This backlash contrasts with earlier efforts, such as a 2022 law exempting large data centers from sales and use taxes to attract the industry.
The growing opposition has spurred legislative action, with lawmakers now considering new bipartisan proposals, potential tax-break rollbacks, and moratoriums. Rep. Joey Andrews, a Democrat from St. Joseph who previously championed tax breaks for data centers, acknowledges the shift in sentiment but emphasizes the importance of fostering economic growth. The survey also found that nearly 60% of local leaders prioritize state and local regulation of hyperscale data centers, and both gubernatorial and senatorial candidates have expressed support for moratoriums. Local officials feel pressured by resident opposition and the prospect of costly legal battles with developers, highlighting the increasing political and community challenges facing data center development in Michigan.